THE NEW ZEALAND GAZETTE. 953

taxation to meet the requirements of the Colony. In accordance with the principle
of equalizing the incidence of taxation, a measure will be presented to you for
imposing a tax on income. One result of that tax will be that, so soon as the
finances of the country admit of it being done, the Legislature can lessen and
ultimately abolish all duties which now press heavily on the necessaries of life and the
springs of industry.

Those railways, which under the authority of Parliament have been com-
pleted between large centres of population, are now yielding a yearly revenue which
not only meets the charge of their maintenance, but pays a large proportion of the
interest on the cost of their construction. The estimated gross revenue of these rail-
ways for the current year is £950,000. They have given a greatly-enhanced value to
property throughout the Colony, and have materially promoted the development of
its resources. Encouraged by this experience, the Government propose to proceed
vigorously with the construction of those lines which have already been or may here-
after be authorized by Parliament, the completion of which will be of great advantage
to the entire community; and for that purpose a measure will be submitted to you
authorizing an additional loan of £5,000,000 to be raised.

The Estimates which will be laid before you have been prepared with a careful
regard for economy.

HONORABLE LEGISLATIVE COUNCILLORS, AND GENTLEMEN OF THE HOUSE OF
REPRESENTATIVES, —

My Advisers are of opinion that the present system of County local self-
government should be placed on a better footing; and that this should be done without
impairing the self-governing powers possessed by Road Boards and Municipalities.
A Bill will therefore be submitted to you, for enabling County Councils to raise—
under certain conditions, and subject to the assent of the ratepayers—loans for public
works such as can now be raised by Municipalities. The Bill will contain provisions
intended to encourage the union of two or more Counties for executing such works;
but it will not be sought to withhold the powers from any County standing alone,
provided the various conditions are complied with.

It would be manifestly impossible for the Government to present during this
session measures which would effect in their entirety all the objects which have been
indicated. Nevertheless, the measures which will be proposed are all in the direction
which my Advisers believe to be consistent with the wishes of the country.

Amongst other important Bills to be submitted to you are—
A Bill to suspend Plurality of Voting in cases of Election to local governing
bodies, whilst those bodies are subsidized out of the general revenue of the Colony :
A. Bill for the better management and the maintenance of Hospitals and Chari-
table Institutions: and
A Bill to regulate the Immigration of Chinese.

In accordance with the intention stated in my Predecessor's Speech last session,
a Royal Commission has been appointed to inquire into the subject of Higher
Education. Papers on the subject will be laid before you.

I am confident that your careful attention will be bestowed on all measures which
may be brought before you in the interests of the whole Colony. I desire to unite
cordially with you in carrying out the wishes of our Most Gracious Sovereign for the
welfare and happiness of Her Majesty's subjects of both races in New Zealand: and I
humbly express my hope that Divine Providence may bless our endeavours to attain
those beneficent ends.

Printed under the authority of the New Zealand Government, by GEORGE DIDSBURY, Government Printer, Wellington.